The Impact of Unions on Wages in Brazilian Manufacturing
AbstractThe empirical literature on the impact of unions on wages has stressed two major conclusions. Firstly, unionised workers earn a wage premium when compared to comparable nonunionised workers. Secondly, the dispersion of wages within the union sector is lower than in the nonunion sector. We examine the validity of these findings in the context of a developing country labour market. Our results show that unionism does create a positive wage differential for male, semi-skilled workers with formal labour contracts in Brazilian manufacturing, and that, contrary to the common finding in the existing literature, wage dispersion is greater in the union sector. We show that these findings can be explained by the greater variance in the characteristics of unionised workers, the vulnerability of nonunionised workers to market conditions, and the structure of wage bargaining.
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Bibliographic InfoPaper provided by Department of Economics, University of Kent in its series Studies in Economics with number 9805.
Date of creation: Jan 1998
Date of revision:
Publication status: Published in Research in Labor Economics, 1999, pp.??-??
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Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
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Fax: +44 (0)1227 827850
Web page: http://www.ukc.ac.uk/economics/
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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